India?s Madhucon buys coal mine in Indonesia: Report

Construction and real-estate company Madhucon Projects Ltd has acquired a 5,000- hectare coal-mining block in Indonesia, in line with its pursuit of getting into the energy sector, Daily news and analysis of India reported Tuesday.

 

The coal mine in the East Kalimantan region will be exploited immediately with the commercialization of 100 hectares which start production by August this year, director finance S Vaikuntanathan said at an analyst conference.

 

The mine has been acquired through a 100 percent subsidiary company in Indonesia on a 30-year lease, he said.

 

The project will use imported coal and Madhucon has tied up with the power trading corporation on offtake of 75-80 percent of the generation, Vaikuntham told analysts.

 

“The memorandum has already been entered into and a detailed project report is being prepared,” he said, stating Madhucon would invest Rs 100-110 crore in the project as equity over the next two-and-a-half years.

 

The move is in line with the company’s plans to get into the power sector for which it has acquired 48 percent equity in Simhapuri Energy Pvt Ltd, a special purpose vehicle which will set up a 540 MW thermal power project in two phases of 270 MW each near the Krishnapatnam port in Nellore, Andhra Pradesh, he said. (*)